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The union leader said that during negotiations within the framework of the Permanent Consultation Forum (VKF) for the competition sector and government, representatives of the government, employers and employees reached an agreement. As he said, next week they will only deal with the drafting of the agreement.
Melinda Mezaros said that next year the minimum wage will rise to 200,000 HUF and the guaranteed minimum wage to 260,000 HUF, provided the government provides the employer with wage administration deductions.
Among the benefits, the president of the association mentioned a 4 percentage point reduction in employer contributions, which would reduce the employer’s burden to 13 percent from January 1, and a reduction in the small business tax rate (Kiva) to 10 percent.
The Ministry of Innovation and Technology (ITM) also said in a statement on Wednesday about the VKF meeting that although some disagreement remained between the parties over the level of compensation for wage increases, positions had converged on benefits. Negotiations will continue in the first week of November with the aim of reaching an agreement as soon as possible, with details of a possible agreement.
The ministry noted that wages have risen steadily in Hungary since 2010. Compared to the beginning of the last decade, the sum of the minimum wage and minimum wage for skilled workers has more than doubled. Jobs and salaries have also been protected under the viral crisis, and the Hungarian economy is among the best performing in Europe. There is a great need for an increase in the minimum wage, with 94 percent of respondents to the national consultation supporting the plan to increase to HUF 200,000. They noted that with this step, the minimum wage from 2022 will exceed the 2010 level of average wages.
The government is striving to ensure that the increase in wage costs does not jeopardize the viability of small and medium-sized companies, which employ two-thirds of Hungarian workers. Reducing the tax rate for small businesses from the current 11 to 10 percent would leave around HUF 13 billion for smaller companies. They wrote that the chamber’s proposal to extend a local business tax cut to clearly reduce wage burdens through 2022, in accordance with best practices this year, remains on the agenda.
Cover photo: Daniel Reinhardt / picture alliance via Getty Images
